Cross-sector due diligence of a hydro and wind portfolio for an investment bank

Client: A leading European investment bank · Sector: Cross-sector renewables · Mandate: Minority shareholder entry

An integrated due diligence and valuation engagement on a renewable energy portfolio combining 11 hydropower plants and one wind farm, supporting a leading European investment bank on its minority shareholder entry. The mandate combined technical audit, regulatory review and consolidated financial modelling across two renewable technologies.

Cross-sector portfolios raise specific challenges: harmonising production forecasts across technologies, normalising O&M cost structures, integrating mixed regulatory regimes (concession vs feed-in tariff vs market revenues), and building a consolidated valuation usable by financial sponsors.

What we did

• Audited the 11 hydropower plants: hydrology, equipment condition, availability, rehabilitation
• Audited the wind farm: turbine performance, availability, O&M contract
• Reviewed regulatory perimeter per asset: concession decrees, water rights, support schemes, PPA
• Built a harmonised cross-technology financial model with sensitivity testing
• Delivered an independent valuation across multiple methodologies (DCF, multiples, regulatory benchmarks)

Result

A robust valuation range and a structured view of asset-specific risks were delivered to the investment bank's decision committee. The minority entry transaction proceeded on the agreed terms, with specific governance provisions reflecting the cross-sector risk profile identified in our report.

This engagement illustrates the cross-sector capability of our energy and renewable asset due diligence practice, combining hydropower and wind expertise within a single integrated team.

Investing in a multi-technology renewable portfolio? Our cross-sector due diligence team combines hydro, wind, solar and gas expertise.